It is common in the technology sector, as well as in other areas of the business community, for companies to attempt to increase profits by directly or indirectly outsourcing certain projects to areas of the world that have an abundant supply of cost-effective labor. However, despite having the benefits of more cost-effective labor, many outsourcing projects fail to deliver the promised cost savings and produce an inferior result.
One of the main problems encountered in outsourcing has more to do with the management of the labor than the skills of the remote workers. Many projects are managed with little oversight or feedback, resulting in subpar work that must be revised or, in some cases, redone. Another problem facing companies is a difficulty in selecting qualified remote workers for a given task.